ENTR: Chapters 1-3 key terms

better widget strategies

Innovation that encompasses new or existing markets.

corridor principle

States that with every venture launched, new and unintended opportunities arise.

displacement school of thought

A school of entrepreneurial thought that focuses on group phenomena such as the political, cultural, and economic environments.

dynamic states model

A network of relationships and systems that convert opportunity tension into value for a venture's customers, generating new resources that maintain the dynamic state.

entrepreneur

An individual who takes calculated risks and applies energy and passion toward the creation and implementation of new ideas and creative solutions, with the vision to recognize opportunity where others see chaos, contradiction, and confusion.

entrepreneurial discipline

The principle that entrepreneurship is based upon the same fundamentals whether the entrepreneur is an existing large institution or an individual starting a new venture singlehanded.

entrepreneurial leadership

An entrepreneur's ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.

Entrepreneurial Revolution

The tremendous increase in entrepreneurial business and entrepreneurial thinking that has developed during the last 20 years, expected to be as powerful to the twenty-first century as the Industrial Revolution was to the twentieth century.

entrepreneurial trait school of thought

A school of entrepreneurial thought that focuses on identifying traits that appear common to successful entrepreneurs.

entrepreneurship

A dynamic process of vision, change, and creation requiring an application of energy and passion toward the creation and implementation of new ideas and creative solutions, including the willingness to take calculated risks and the vision to recognize opportunity where others see chaos.

environmental school of thought

A school of entrepreneurial thought that focuses on the external factors and forces—values, mores, and institutions—that surround a potential entrepreneur's lifestyle.

external locus of control

A point of view in which external processes are sometimes beyond the control of the individual entrepreneur.

financial/capital school of thought

A school of entrepreneurial thought that focuses on the ways entrepreneurs seek seed capital and growth funds.

framework of frameworks

Allows for entrepreneurship theory to move forward by identifying the static and dynamic elements of new theories, typologies, or frameworks.

gazelle

A business establishment with at least 20 percent sales growth every year, starting with a base of at least $100,000.

great chef strategies

The skills or special talents of one or more individuals around whom a venture is built.

internal locus of control

The viewpoint in which the potential entrepreneur has the ability or control to direct or adjust the outcome of each major influence.

macro view of entrepreneurship

A broad array of factors that relate to success or failure in contemporary entrepreneurial ventures.

micro view of entrepreneurship

Examines the factors specific to entrepreneurship and part of the internal locus of control.

mountain gap strategies

Identifying major market segments as well as interstice (in-between) markets that arise from larger markets.

strategic formulation school of thought

A school of entrepreneurial thought that focuses on the planning process used in successful venture formulation.

venture opportunity school of thought

A school of entrepreneurial thought that focuses on the search for idea sources, on concept development, and on implementation of venture opportunities.

water well strategies

The ability to gather or harness special resources (land, labor, capital, raw materials) over the long term.

career risk

Whether an entrepreneur will be able to find a job or go back to an old job if his or her venture fails.

code of conduct

A statement of ethical practices or guidelines to which an enterprise adheres.

cognition

Mental processes including attention, remembering, producing and understanding language, solving problems, and making decisions.

cognitive adaptability

The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments.

dark side of entrepreneurship

A destructive side that exists within the energetic drive of successful entrepreneurs.

entrepreneurial behavior

An entrepreneur's decision to initiate the new venture formation process.

entrepreneurial cognition

The knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.

entrepreneurial experience

Entrepreneurs emerge as a function of the novel, idiosyncratic, and experiential nature of the venture creation process involving three parallel, interactive phenomena: emergence of the opportunity, emergence of the venture, and emergence of the entrepreneur.

entrepreneurial mind-set

All the characteristics and elements that compose the entrepreneurial potential in every individual.

entrepreneurial motivation

The willingness of an entrepreneur to sustain his or her entrepreneurial behavior.

entrepreneurial persistence

An entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counter-influences or other enticing alternatives.

ethics

A set of principles prescribing a behavioral code that explains what is good and right or bad and wrong.

failure

A venture not being able to survive as caused by inexperience or incompetent management.

family and social risk

The exposure of an entrepreneur's family to incomplete family experiences and possible emotional strain due to the time and energy demands of starting a new venture.

financial risk

The money or resources at stake for a new venture.

grief recovery

The traditional process of recovering from grief that involves focusing on the particular loss to construct an account that explains why the loss occurred.

metacognitive model

Integrates the combined effects of entrepreneurial motivation and context toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment.

psychic risk

The great psychological impact on and the well-being of the entrepreneur who creates a new venture.

rationalizations

What managers use to justify questionable conduct.

risk

Involves uncertain outcomes or events; the higher the rewards, the greater the risk entrepreneurs usually face.

role assertion

Unethical acts involving managers/entrepreneurs who represent the firm and rationalize that they are acting in the firm's long-run interests.

role distortion

Unethical acts committed on the basis that they are "for the firm" even though they are not, involving managers/entrepreneurs who rationalize individual acts as being in the firm's long-run interests.

role failure

Unethical acts against the firm involving a person failing to perform his or her managerial role, such as superficial performance appraisals or not confronting expense account cheating.

social cognition theory

Introduces the idea of knowledge structures—mental models ordered to optimize personal effectiveness within given situations—to the study of entrepreneurship.

stress

A function of discrepancies between a person's expectations and ability to meet demands, as well as discrepancies between the individual's expectations and personality.

bootlegging

Secretly working on new ideas on company time as well as on personal time.

champion

Within the context of corporate entrepreneurship, a person with an innovative vision and the ability to share it.

collective entrepreneurship

Individual skills integrated into a group wherein the collective capacity to innovate becomes something greater than the sum of its parts.

corporate entrepreneurship

A new "corporate revolution" taking place due to the infusion of entrepreneurial thinking into bureaucratic structures.

Corporate Entrepreneurship Assessment Instrument (CEAI)

A questionnaire designed to measure the key entrepreneurial climate factors.

corporate venturing

The adding of new businesses or portions of new businesses via equity investments to the corporation, accomplished through internal, cooperative, or external corporate venturing.

incremental innovation

The systematic evolution of a product or service into newer or larger markets.

innovation team (I-Team)

An internal corporate team formulated for the purpose of creating new innovations for the organization.

interactive learning

Learning ideas within an innovative environment that cut across traditional, functional lines in the organization.

intracapital

Special capital set aside for the corporate entrepreneur to use whenever investment money is needed for further research ideas.

intrapreneurship

Entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results within an established corporation.

radical innovation

Inaugural breakthroughs launched from experimentation and determined vision that are not necessarily managed but must be recognized and nurtured.

Skunk Works

A highly innovative enterprise that uses groups functioning outside traditional lines of authority.

strategic entrepreneurship

The exhibition of large-scale or otherwise highly consequential innovations adopted in the firm's pursuit of competitive advantage, which can involve strategy, products, markets, internal organization, or business model.

top management support

When upper level managers in a corporation concentrate on helping individuals within the system develop more entrepreneurial behavior.